Beau Plan, November 2024
The Mauritius Edition of the Africa Early-Stage Investor Meetup 2024, hosted by Mo Angels, took place on 25 October 2024, at Creative Park, Beau Plan. This dynamic event aligns with Mo Angels and its partners ongoing efforts in unlocking “smart money” and enhancing early-stage investment structures to position the country as a hub for African startup growth. The meetup gathered early-stage investors, public and private sector representatives and policy makers in the innovation and entrepreneurial ecosystem.
The AESIS event showcased an outstanding line-up of prominent angel investors from India, Africa, and Mauritius. The discussion went on how to effectively bridge funding gaps and how the government could facilitate the implementation of practical solutions to the challenges faced in early-stage investing. These insights offer a strategic roadmap to foster supportive environments for startups in Mauritius and beyond.
Key sessions included:
- Early-Stage Investing Panorama: Isabelle de Melo drew on Mo Angels’ three years of experience in Mauritius and other African countries to list opportunities for further development.
- A Practical Solution for De-risking Angel Investments: Tomi Davies, President of ABAN, showcased Catalytic Africa and suggested adapting the ABAN and AfriLabs Model to Mauritius, which is already operational.
- A Low-Cost, Regulatory-Light Angel Fund: Padmaja Ruparel, Co-founder of the Indian Angel Network, explained in detail how Mauritius could enable cost-effective, cross-border syndicated investing.
- Startup Pitches: A dry-run session for founders who will be on stage representing Mauritius innovation at Africa Ignite in Cape Town.
Michel Cordani, Co-founder of Mo Angels, emphasised the significance of the meetup: “This event is more than just a gathering; it’s a catalyst for innovation in Mauritius and beyond. We are here to bridge the gap in early-stage investing, addressing the unique challenges faced by startups. By bringing together innovators, entrepreneurs, and policymakers, we aim to foster an environment where creative ideas can thrive. Our discussions here highlight potential solutions, such as syndication and de-risking strategies, which are crucial for nurturing the next generation of successful startups.”
Isabelle de Melo, Co-founder of Mo Angels, noted the current state of early-stage funding in Africa: “Though we focus on early-stage investments, recent studies reveal that the landscape is changing. In Africa, venture capital funding totalled £4.5 billion, with around 200 deals under £1 million and 600 deals exceeding £7 million. This indicates that we are operating in an environment where deals are generally much smaller, typically ranging from £20,000 to £1.5 million. Unfortunately, traditional banks often view these investments as too risky, leading to a lack of interest in funding smaller startups. They hesitate to invest due diligence resources for returns on modest investments, which is precisely where business angels come into play.”
She went onto add, “Business angels can engage in a wide range of funding amounts, from as little as £100 on our platform to millions of pounds. Our experience in Mauritius over the past three to four years has seen average investments between £40,000 and £70,000. Additionally, the emergence of multiple angel networks across Africa, supported by various development finance institutions, has become crucial in fostering an innovative ecosystem capable of addressing the continent’s challenges. Mauritius, with its diverse population, boasts a rich network and significant expertise within its community. Since our inception, we’ve invested $800,000 in several startups and are poised to make more investments soon. Our goal is to enhance our local ecosystem while also exploring opportunities in other countries, positioning ourselves as a go-to destination for startups presenting diverse business models from regions such as Kenya, South Africa, Ghana, Mauritius, Ethiopia, and Nigeria. The ongoing development of incubators, particularly in social entrepreneurship, indicates our commitment to supporting innovative solutions, drawing inspiration from successful models in India that could be replicated across Africa.”
Vinay Guddye, Director of the Economic Development Board, shared his vision for the future: “Creating an ecosystem that provides finance for startups is not just beneficial; it is essential for the growth of innovation across Africa. We understand that the continent is brimming with potential, and by closing the funding gap for young entrepreneurs, we can unlock new technologies and drive economic growth. Our commitment today is to collaborate with organisations like Mo Angels and to establish a sustainable framework that empowers innovators to access the capital they need to succeed.”
Guillaume Passebecq, Head of Private Banking and Wealth Management at Bank One, shared insights on supporting entrepreneurship: “Entrepreneurship drives economic growth, and at Bank One, we are committed to facilitating cross-border investments that nurture startups. Our goal is to provide tailored financial solutions and advisory services that make funding more accessible for entrepreneurs. By fostering a strong entrepreneurial ecosystem, we contribute to the region’s resilience and innovation. We are also proud to leverage the substantial presence of our stakeholders in the region to build a dynamic environment that supports the next generation of business leaders.”
Ramakrishna Madoo, Senior Manager of Business Development at MITCO, highlighted the importance of early-stage support: “We are here today because we recognise that every unicorn starts as a humble startup. Our goal is to nurture these budding enterprises through various support mechanisms, including angel investing and strategic partnerships. By providing structured solutions, we can help startups transition from the seed stage to achieving significant growth. With the right support, these companies have the potential to become the industry leaders of tomorrow.”
The Mauritius Edition of the Africa Early-Stage Investor Meetup 2024 underscored the critical role of angel investing in bridging the early-stage funding gap and fostering innovation. The event showcased the evolving landscape of early-stage funding in Africa and highlighted the importance of de-risking and cross-border solutions. Inspired by leading experts and successful international models, Mo Angels aims to continue building a robust local ecosystem with the support of relevant stakeholders. Mauritius already has many ingredients needed to develop a thriving entrepreneurial ecosystem, including favorable geography and jurisdiction, presenting a significant opportunity. We are working towards assembling the pieces of the puzzle through a series of strategies. We need new policies and financial instruments in building a robust ecosystem that would attract more investment in this asset class.
***ENDS***
